Part 15

But they weren't ORGANIZING according to our TWO FUNDAMENTALS. Literally, they were deputizing all the work that others could do--and not confining the work deputized to work they themselves could do only at the expense of something more important.

How well the chart tells the story! The great big white piece of pie marked "IDLE" shows exactly where Austin and Black went wrong. The worst thing that ever happened to them was the day they went home from Chicago and tried to run their business the way they thought Mr. James W. Simpson runs his large retail emporium.

Somewhere along the line they tripped over the point of vanishing returns and kept right on going.

And thus we come to the Scylla and Charybdis of our job of ORGANIZING. Remember we are not interested in the mere knack of getting someone else to take over every last responsibility that can be borne by another. Perhaps that may be good management for a Schwab--in so far, at least, as it leaves his mind free for the exercise of the broad judgment we mentioned a while ago. Nor are we interested in the sheer industry and application involved in doing without assistance everything that can possibly be so done, although doing it may be equally good management for, say, a file clerk. Rather is our interest in the KNACK OF SENSING THE DIVIDING LINE between WORK to PERFORM and WORK to DEPUTIZE. It is that ability which is the mark of the successful manager.

* * * * *

Where is this DIVIDING LINE? How shall we know where to DEPUTIZE and when to PERFORM? What kind of work shall we turn over to subordinates? What shall we reserve for ourselves?

Again, whatever the job or business we are engaged in organizing, there are simple rules to follow.

But first an illustration which will help to make the point.

Consider the credit man for a large concern which sold machines on a monthly payment plan.

He was always in a jam with the sales department. It took too long, complained the sales manager, to get credit rulings. It was no fun to put a whole lot of work into selling the customer, only to have the order turned down by the house because of poor credit. Why couldn't the credit man give them a ruling before they attempted to close a sale? Sometimes it took so long to get an O.K. that the prospect got all cold and went somewhere else.

The treasurer of the company was drawn into the picture when the sales manager openly declared he'd "get" the credit man.

And it certainly looked as if the sales manager had a good case.

"But," protested the credit man, "I've made mighty few mistakes. As for delays--well, I don't know how I could work any harder."

"Maybe you work too hard," the treasurer ventured.

"Hm, if I didn't do what I do, I don't know who would."

"Hold on, now, let's get this thing straight. You're valuable to the company because of your long experience and good judgment on credits. When you have all the dope on a man, I'll bet my last dollar on your decision. The only mistakes you ever make are when you hurry your decisions.

"But--and here's the point--you aren't any better at digging out the facts than either of your two assistants. Yet here's what you do. You divide salesmen's requests for credit rulings into two groups. You take those that run over $500; your assistants get the others. Each of you does his own investigating and digging--and except in puzzling cases, you practically let your two men make their own decisions.

Myself Assistants $500 Up Under $500 Mercantile Reports Bank References Special Investigations "Briefing" Data Final Ruling Correspondence

$500 Up Under $500 { Mercantile Reports Assistants { Bank References { Special Investigations { "Briefing" Data

Myself { Final Ruling { Correspondence

"Why, listen. You, the best man we have on decisions, spend more than half your time digging, while your assistants spend much of their time making decisions. What's the result? Delay, the department in a jam, some decisions made in a hurry, some by your assistants.

"The trouble with you is, you haven't organized your department right." And the treasurer sketched the diagram reproduced in the upper chart on page 105.

"Why, man, your job is to keep all bad credits off the books--not just the big ones. A bad risk--whether it's $5 or $5000--is a mistake. You're an expert credit man--but as a MANAGER, you're a WASHOUT.

"This," he added, "is the way you ought to set up your department. Then you, the best man on decisions, will do all the deciding. Your two assistants, who are just as good as you are at digging, will spend all their time getting you the facts." And as he spoke he sketched in the lower chart.

The credit man had erred in the other direction from the two retail merchants. He wasn't doing enough managing. He was keeping too much work for himself. And he was deputizing the wrong kind of work.

The merchants were deputizing work they should have done themselves--the general supervision of stocks, advertising and sales did not require their undivided attention--and the volume and profits of the business wouldn't stand so much unproductive expense.

Our credit man, on the other hand, was doing work which others could very well do for him--the time he spent on such work should have been devoted to other and more important responsibilities.

In the story of the credit man, however, another fundamental of good organization comes to light. Remember how the treasurer classified the character of the work to be done? Not only was the credit man trying to do too much work, but even when he did assign work to his assistants, he assigned the wrong kind. He deputized, true enough--but he erred in regard to the KIND OF WORK HE DEPUTIZED. He thought he could deputize small credits. It didn't take the treasurer long to show him that the amount made no difference--it was the character of the work that required consideration.